2005 Texas Insurance Code CHAPTER 82. SANCTIONS

INSURANCE CODE

CHAPTER 82. SANCTIONS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 82.001. DEFINITION.  In this chapter, "authorization" 
means a permit, license, certificate of authority, certificate of 
registration, or other authorization issued or existing under the 
commissioner's authority or this code.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 82.002. APPLICATION OF CHAPTER.  (a) This chapter 
applies to each company regulated by the commissioner, including:
		(1)  a domestic or foreign, stock or mutual, life, 
health, or accident insurance company;
		(2)  a domestic or foreign, stock or mutual, fire or 
casualty insurance company;
		(3)  a Mexican casualty company;                                              
		(4)  a domestic or foreign Lloyd's plan insurer;                              
		(5)  a domestic or foreign reciprocal or interinsurance 
exchange;           
		(6)  a domestic or foreign fraternal benefit society;                         
		(7)  a domestic or foreign title insurance company;                           
		(8)  an attorney's title insurance company;                                   
		(9)  a stipulated premium insurance company;                                  
		(10)  a nonprofit legal service corporation;                                  
		(11)  a health maintenance organization;                                      
		(12)  a statewide mutual assessment company;                                  
		(13)  a local mutual aid association;                                         
		(14)  a local mutual burial association;                                      
		(15)  an association exempt under Article 14.17;                              
		(16)  a nonprofit hospital, medical, or dental service 
corporation, including a company subject to Chapter 20;
		(17)  a county mutual insurance company;  and                                 
		(18)  a farm mutual insurance company.                                        
	(b)  This chapter also applies to:                                             
		(1)  an agent of an entity described by Subsection (a);  
and                
		(2)  an individual or a corporation, association, 
partnership, or other artificial person who:
			(A)  is engaged in the business of insurance;                                
			(B)  holds an authorization;  or                                             
			(C)  is regulated by the commissioner.                                       
	(c)  The commissioner's authority under this chapter applies 
to each form of authorization and each person or entity holding an 
authorization.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.  
Amended by Acts 2001, 77th Leg., ch. 1419, § 18, eff. June 1, 
2003;  Acts 2001, 77th Leg., ch. 1420, § 11.002, eff. Sept. 1, 
2001.


	§ 82.003. PROCEEDINGS UNDER OTHER LAW.  The 
commissioner's authority under this chapter is in addition to any 
other authority to enforce a sanction, penalty, fine, forfeiture, 
denial, suspension, or revocation otherwise authorized by law.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           

SUBCHAPTER B. IMPOSITION OF SANCTIONS


	§ 82.051. CANCELLATION OR REVOCATION OF 
AUTHORIZATION.  After notice and opportunity for a hearing, the 
commissioner may cancel or revoke an authorization if the holder of 
the authorization is found to be in violation of, or to have failed 
to comply with, this code or a rule of the commissioner.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 82.052. OTHER SANCTIONS.  In addition to the 
cancellation or revocation of an authorization under Section 
82.051, the commissioner may:
		(1)  suspend the authorization for a specified time not 
to exceed one year; 
		(2)  order the holder of the authorization to cease and 
desist from:        
			(A)  the activity determined to be in violation of 
this code or a rule of the commissioner;  or
			(B)  the failure to comply with this code or a rule 
of the commissioner;   
		(3)  direct the holder of the authorization to pay an 
administrative penalty under Chapter 84;
		(4)  direct the holder of the authorization to make 
restitution under Section 82.053;  or
		(5)  take any combination of those actions.                                   

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 82.053. RESTITUTION.  (a) The commissioner may direct 
the holder of an authorization to make complete restitution to each 
Texas resident, each Texas insured, and each entity operating in 
this state that is harmed by a violation of, or failure to comply 
with, this code or a rule of the commissioner.
	(b)  The holder of the authorization shall make the 
restitution in the form and amount and within the period determined 
by the commissioner.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 82.054. CANCELLATION ON FAILURE TO COMPLY.  If it is 
found after hearing that a holder of an authorization has failed to 
comply with an order issued under Section 82.052, the commissioner 
shall cancel each authorization held by the holder.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 82.055. INFORMAL DISPOSITION.  (a) The commissioner may 
informally dispose of a matter under this subchapter by consent 
order, agreed settlement, stipulation, or default.
	(b)  An informal disposition may include a provision under 
which the holder of the authorization agrees to a sanction under 
this subchapter with the express reservation that:
		(1)  the holder does not admit a violation of this code 
or of a rule;  and  
		(2)  the existence of a violation is in dispute.                              

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 82.056. NOTICE TO OTHER STATES.  The commissioner shall 
give notice of an action taken under this subchapter to the 
insurance commissioner or other similar officer of each state.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.